Corebridge Stock Up 7.6% Since Q1 Earnings Beat Estimates

Core Points - Corebridge Financial, Inc. (CRBG) shares increased by 7.6% following the release of first-quarter 2025 results, which showed better-than-expected earnings driven by higher investment income and reduced expenses, despite declines in Life Insurance and institutional market premiums and deposits [1][2] - The company reported operating earnings per share of $1.16, exceeding the Zacks Consensus Estimate by 0.9%, and reflecting a 5.5% year-over-year increase [2] - Adjusted revenues fell 19% year over year to $4.7 billion, missing the consensus estimate by 9.2% [2] Operational Performance - Premiums and deposits totaled $9.3 billion, down 12% year over year, with a 6% decline when excluding transactional activity and international business sales, primarily due to lower fixed annuity deposits [3] - Net investment income rose by 10.6% year over year to $2.9 billion, attributed to increased base portfolio income and variable investment income [3] - Total benefits and expenses decreased by 7.6% year over year to $4.5 billion, driven by lower policyholder benefits and general operating expenses [4] Segment Performance - Individual Retirement: Premiums and deposits were $4.7 billion, down 3% year over year, while fee income increased by 0.3% to $308 million [5] - Group Retirement: Premiums and deposits fell 11% year over year to $1.8 billion, with fee income improving by 2.6% to $195 million [7] - Life Insurance: Premiums and deposits decreased by 22% year over year to $856 million, but adjusted pre-tax operating income doubled to $108 million due to improved underwriting margins [8] - Institutional Markets: Premiums and deposits dropped 25% year over year to $1.9 billion, with fee income declining by 6.3% to $15 million [9] Financial Position - As of March 31, 2025, Corebridge had a cash balance of $393 million, down from $806 million at the end of 2024, while total investments increased to $250.2 billion from $243.8 billion [12] - Total assets rose to $390 billion from $389.4 billion at the end of 2024, with total equity increasing by 4.1% to $12.8 billion [13] Shareholder Returns - In the first quarter, Corebridge repurchased common shares worth $321 million and paid quarterly dividends totaling $133 million [14]